Summary of Class 9 Commercial Application topic “Ownership Structures – Partnership”:

Partnership is a form of business organization where two or more individuals come together to carry on a business and share its profits and losses. It is governed by the Indian Partnership Act, 1932. Some key points about partnership are:

1. **Formation**: A partnership is formed through an agreement among the partners. The agreement can be oral or written.

2. **Number of Partners**: A partnership must have at least two partners and can have a maximum of 20 partners (10 in case of banking business).

3. **Liability**: Partners have unlimited liability, which means they are personally liable for the debts and obligations of the partnership.

4. **Profit Sharing**: Partners share the profits and losses of the business according to the terms of the partnership agreement.

5. **Management**: Partners can actively participate in the management of the business unless otherwise specified in the agreement.

6. **Types of Partners**: There can be active partners who take part in the day-to-day operations of the business and sleeping partners who contribute capital but do not participate in management.

7. **Registration**: While registration of a partnership is not compulsory, it is advisable to do so to avail certain legal benefits.

8. **Dissolution**: A partnership can be dissolved by mutual agreement among the partners, by court order, or by the death or insolvency of a partner.

Partnership offers several advantages such as ease of formation, flexibility in management, and sharing of risks and responsibilities. However, it also has disadvantages like unlimited liability, limited capital, and lack of continuity.